Over the course of the previous week, Dogs [DOGS] has witnessed a substantial 40% surge, driven by a surge in buying interest and positive momentum in the market.
Presently priced at $0.0007026, the token experienced a minor 1.54% dip at the time of reporting, yet it has managed to sustain impressive growth amidst market volatility. As DOGS continues to attract attention, the primary query that arises is: can this upward trend be maintained?
DOGS technical analysis: Key thresholds to monitor
DOGS has exhibited encouraging movement, surpassing previous lows and making advancements towards higher levels. The Fibonacci retracement chart highlights crucial levels that could dictate the token’s future trajectory.
Currently positioned near the 0.618 Fibonacci level, this could potentially serve as a support zone to stabilize prices during pullbacks.
Furthermore, the subsequent resistance is anticipated around the 1.618 Fibonacci extension at $0.0011343. This juncture holds significance as breaching it may trigger a fresh surge, possibly propelling DOGS towards the 2.618 extension level at $0.0015458.
However, a failure to surpass these resistance markers might result in consolidation, with a support level around $0.0006565.
With the Relative Strength Index (RSI) presently at 54.76, it indicates that the token has not entered the overbought zone. This reading suggests that DOGS still has an avenue for growth before encountering potential selling pressures.
Hence, this moderately bullish RSI reading aligns with the possibility of the upward trend persisting, provided that the overall market conditions remain supportive.
DOGS on-chain signals maintain a positive stance
The on-chain data unveils several optimistic signals. Despite a minor decrease in net network expansion, three notable metrics portray a favorable outlook. The “In the Money” metric, showcasing a 9.79% uptick, signifies that more DOGS holders are reaping profits, thereby enhancing investor confidence.
Similarly, the “Concentration” metric has increased by 0.03%, indicating that major holders or “whales” are maintaining their positions, reflecting trust in the token’s potential.
Furthermore, the “Large Transactions” metric, up by 0.25%, indicates substantial trades are occurring, hinting at institutional interest or significant investments.
These optimistic on-chain metrics underscore a growing backing within the DOGS ecosystem, fortifying its fundamental underpinning amid price fluctuations.
Liquidation data reveals a bias towards long positions
The liquidation data illustrates a recent upsurge in long liquidations, totaling $743.41K, surpassing the $111.39K in short liquidations. This ratio suggests that a majority of traders maintain a positive outlook, anticipating further price escalations.
Leading in long liquidations is Binance, with $509.38K, followed by substantial long liquidations on Bybit and OKX, each surpassing $100K.
Consequently, despite prevailing optimism, traders are advised to exercise caution as elevated liquidation levels have the potential to spur sudden price fluctuations.
Can DOGS Uphold its Upward Trajectory?
DOGS has displayed notable strength with a 40% surge in the past week, with technical and on-chain indicators pointing towards further growth potential.
However, the critical resistance levels and prevailing market sentiment will play a pivotal role in determining the sustainability of this uptrend. Should DOGS maintain its current momentum and breach essential Fibonacci extensions, it might continue its upward climb.